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Investments & Fair Value Measurements
 6 Months Ended
Mar. 26, 2021
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract]  
Investments & Fair Value Measurements . Investments and Fair Value Measurements
We use cash holdings to purchase investment grade securities diversified among security types, industries, and issuers. All of our investment securities are measured at fair value, and are recorded within cash equivalents and both short-term and long-term investments in our condensed consolidated balance sheets. With the exception of our mutual fund investments held in our SERP and classified as trading securities, all of our investments are classified as AFS securities. Derivative contracts are used to hedge currency risk, these are carried at fair value and classified as other assets and other liabilities.
Our investment securities primarily consist of government bonds, certificates of deposit, municipal debt securities, corporate bonds, U.S. agency securities, and commercial paper. In addition, our cash and cash equivalents also consist of highly-liquid money market funds. Consistent with our investment policy, none of our municipal debt investments are supported by letters of credit or standby purchase agreements. Our cash and investment portfolio consisted of the following (in thousands):
March 26, 2021
CostUnrealizedEstimated Fair Value
GainsLossesTotalLevel 1Level 2Level 3
Cash and cash equivalents:
Cash$791,545 $— $— $791,545 $791,545 $— $— 
Cash equivalents:
Money market funds312,685 — — 312,685 312,685 — — 
Government bonds340 — — 340 340 — — 
Cash and cash equivalents1,104,570 — — 1,104,570 1,104,570 — — 
Short-term investments:
Certificate of deposit1,825 — — 1,825 — 1,825 — 
U.S. agency securities1,397 20 — 1,417 — 1,417 — 
Government bonds1,645 11 — 1,656 100 1,556 — 
Commercial paper6,079 2 — 6,081 — 6,081 — 
Corporate bonds24,461 116 (3)24,574 — 24,574 — 
Municipal debt securities22,925 105 (1)23,029 — 23,029 — 
Short-term investments58,332 254 (4)58,582 100 58,482 — 
Long-term investments:
Certificate of deposit630 — — 630 — 630 — 
U.S. agency securities1,961 19 (1)1,979 — 1,979 — 
Government bonds7,731 56 (6)7,781 1,627 6,154 — 
Corporate bonds19,477 186 (11)19,652 — 19,652 — 
Municipal debt securities8,387 82 (1)8,468 — 8,468 — 
Other long-term investments (1)
3,678 — — 3,678 — — — 
Long-term investments41,864 343 (19)42,188 1,627 36,883 — 
Total cash, cash equivalents, and investments$1,204,766 $597 $(23)$1,205,340 $1,106,297 $95,365 $— 
Investments held in supplemental retirement plan:
Assets$4,545 $— $— $4,545 $4,545 $— $— 
Included in prepaid expenses and other current assets and other non-current assets
Liabilities$4,545 $— $— $4,545 $4,545 $— $— 
Included in accrued liabilities and other non-current liabilities
Currency derivatives as hedge instruments:
Assets: Included in other current assets$— $4,977 $— $4,977 $— $4,977 $— 
Liabilities: Included in other accrued liabilities— — (112)(112)— (112)— 
(1)Other long-term investments as of March 26, 2021 is comprised of one equity method investment which is not carried at fair value of $3.7 million.
September 25, 2020
CostUnrealizedEstimated Fair Value
GainsLossesTotalLevel 1Level 2Level 3
Cash and cash equivalents:
Cash$856,740 $— $— $856,740 $856,740 $— $— 
Cash equivalents:
Commercial paper900 — — 900 — 900 — 
Money market funds214,111 — — 214,111 214,111 — — 
Government bonds125 — — 125 125 — — 
Cash and cash equivalents1,071,876 — — 1,071,876 1,070,976 900 — 
Short-term investments:
Certificate of deposit2,277 1 — 2,278 — 2,278 — 
U.S. agency securities999 12 — 1,011 — 1,011 — 
Government bonds5,118 47 — 5,165 1,370 3,795 — 
Commercial paper4,727 4 — 4,731 — 4,731 — 
Corporate bonds18,754 87 (3)18,838 — 18,838 — 
Municipal debt securities14,828 97 — 14,925 — 14,925 — 
Short-term investments46,703 248 (3)46,948 1,370 45,578 — 
Long-term investments:
U.S. agency securities2,214 56 — 2,270 — 2,270 — 
Government bonds5,137 80 — 5,217 1,633 3,584 — 
Corporate bonds24,657 419 (7)25,069 — 25,069 — 
Municipal debt securities15,220 203 (6)15,417 — 15,417 — 
Other long-term investments (1)4,176 — — 4,176 — — — 
Long-term investments51,404 758 (13)52,149 1,633 46,340 — 
Total cash, cash equivalents, and investments$1,169,983 $1,006 $(16)$1,170,973 $1,073,979 $92,818 $— 
Investments held in supplemental retirement plan:
Assets$4,279 $— $— $4,279 $4,279 $— $— 
Included in prepaid expenses and other current assets and other non-current assets
Liabilities$4,279 $— $— $4,279 $4,279 $— $— 
Included in accrued liabilities and other non-current liabilities
Currency derivatives as hedge instruments:
Assets: Included in other current assets$— $4,267 $— $4,267 $— $4,267 $— 
Assets: included in other non-current assets— 369 — 369 — 369 — 
Liabilities: Included in other accrued liabilities— — (79)(79)— (79)— 

(1)Other long-term investments as of September 25, 2020 is comprised of one equity method investment which is not carried at fair value of $4.2 million.
Fair Value Hierarchy.    Fair value is the exchange price that would be received for an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability, in an orderly transaction between market participants at the measurement date. We minimize the use of unobservable inputs and use observable market data, if available, when determining fair value. We classify our inputs to measure fair value using the following three-level hierarchy:
Level 1: Quoted prices in active markets at the measurement date for identical assets and liabilities. We base the fair value of our Level 1 financial instruments, which are traded in active markets, using quoted market prices for identical instruments.
Level 2: Prices may be based upon quoted prices in active markets or inputs not quoted on active markets but are corroborated by market data. We obtain the fair value of our Level 2 investments from a professional pricing service, which may use quoted market prices for identical or comparable instruments, or model driven valuations using observable market data or inputs corroborated by observable market data. To validate the fair value determination provided by our primary pricing service, we perform quality controls over values received which include comparing our pricing service provider’s assessment of the fair values of our investment securities against the fair values of our investment securities obtained from another independent source, reviewing the pricing movement in the
context of overall market trends, and reviewing trading information from our investment managers. In addition, we assess the inputs and methods used in determining the fair value in order to determine the classification of securities in the fair value hierarchy. The fair value of the currency derivatives are calculated from market spot rates, forward rates, interest rates, and credit ratings at the end of the period.
Level 3: Unobservable inputs are used when little or no market data is available and reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability.
Securities In Gross Unrealized Loss Position.    We periodically evaluate our investments for other-than- temporary declines in fair value. The unrealized losses on our AFS securities were primarily the result of unfavorable changes in interest rates subsequent to the initial purchase of these securities. The following table presents the gross unrealized losses and fair value for those AFS securities that were in an unrealized loss position for less than twelve months as of March 26, 2021 and September 25, 2020 (in thousands):
March 26, 2021September 25, 2020
Less Than 12 MonthsLess Than 12 Months
Investment TypeFair ValueGross Unrealized LossesFair ValueGross Unrealized Losses
Certificate of deposit$630 $— $— $— 
U.S. agency securities555 (1)— — 
Government bonds3,929 (6)— — 
Corporate bonds14,261 (13)7,076 (10)
Municipal debt securities5,747 (2)2,505 (6)
Total$25,122 $(22)$9,581 $(16)
As of March 26, 2021 and September 25, 2020, there were no gross unrealized losses and no AFS securities that were in an unrealized loss position for twelve months or greater. Although we had certain securities that were in an unrealized loss position for less than twelve months as of March 26, 2021 and September 25, 2020, we expect to recover the full carrying value of these securities. As a result, we do not consider any portion of the unrealized losses at either March 26, 2021 or September 25, 2020 to represent an other-than-temporary impairment, nor do we consider any of the unrealized losses to be credit losses.
Investment Maturities.    The following table summarizes the amortized cost and estimated fair value of the AFS securities within our investment portfolio based on stated maturities as of March 26, 2021 and September 25, 2020, which are recorded within cash equivalents and both short and long-term investments in our condensed consolidated balance sheets (in thousands):
March 26, 2021September 25, 2020
Range of maturityAmortized CostFair ValueAmortized CostFair Value
Due within 1 year$371,358 $371,608 $261,839 $262,085 
Due in 1 to 2 years23,164 23,459 29,328 29,814 
Due in 2 to 5 years15,021 15,050 17,900 18,159 
Total$409,543 $410,117 $309,067 $310,058